NATIONALISED lender Northern Rock said it would be returned to the private sector “only when conditions are right” as half-year figures showed a £140 million loss.

Bosses at the “good” side of the bank – spun off from the so-called “bad” part, Northern Rock Asset Management, in January – said the results were in line with expectations, despite being in the red.

But separate figures for Northern Rock AM, which houses the former bank’s more toxic loans, showed a return to profit and further falls in bad debts. Northern Rock AM reported underlying pre-tax profits of £167.3 million in the six months to June 30.